Send me real-time posts from this site at my email

Bear of the Day: Cardinal Health (CAH)

Sometimes, it is easy to get caught up in the momentum of a fast-moving stock. We have all heard the old adage of “Buy low and sell high” but it is equally as fun to “Buy high and sell higher.” You have to be sure that your stock that is on the move has staying power and is not just on a quick sugar high. One way to figure this out is by looking at earnings. Stocks with the strongest earnings trends tend to outperform those with weak earnings profiles. When analysts on Wall Street start moving their numbers in the wrong direction, it can lead to problems for a stock’s price.

Today’s Bear of the Day is a stock that has seen earnings estimate revisions coming down. That stock is Cardinal Health CAH. Cardinal Health, Inc. operates as an integrated healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home. The company operates in two segments, Pharmaceutical and Medical. 

Currently, Cardinal Heath is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable Zacks Rank is the recent earnings estimate revisions from analysts all over Wall Street. Over the last sixty days, two analysts have cut their expectations for both the current year and next year. The bearish sentiment has dropped our Zacks Consensus Estimates for the current year from $5.85 to $5.60 while next year’s number is off from $6.57 to $6.14. That current year number represents a mere 54 bps of growth over last year while next year is forecast to come in at 9.6% growth. Sales growth has still been relatively strong with 9.15% this year and 4.81% next year.

The Medical – Dental Supplies industry ranks in the Top 33% of our Zacks Industry Rank. There are other stocks within the same industry which are in the good graces of the Zacks Rank. These include Zacks Rank #1 (Strong Buy) Laboratory Corp of America LH and well as Zacks Rank #2 (Buy) STAAR Surgical STAA.


Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Laboratory Corporation of America Holdings (LH): Free Stock Analysis Report
 
Cardinal Health, Inc. (CAH): Free Stock Analysis Report
 
STAAR Surgical Company (STAA): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue